As the the remaining lease term of a Barton under Needwood domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Barton under Needwood will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you increased control over the value of your Barton under Needwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a high value apartment in Barton under Needwood on the market with a lease of fraction over fifty eight years unexpired. Noah informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were e-mailed by Dr U Gunderson who, having purchased a studio flat in Barton under Needwood in September 2001. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar premises in Barton under Needwood with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded on 9 July 2103. Considering the 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
In 2012 we were contacted by Mr and Mrs. O Ricardo who, having owned a one bedroom apartment in Barton under Needwood in April 1997. The question was if we could approximate the premium would be for a 90 year lease extension. Identical properties in Barton under Needwood with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed annually. The lease finished in 2092. Having 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.